Setting business aims and objectives (AQA GCSE Business): Flashcards
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What's the difference: aims vs objectives?
What's the difference: aims vs objectives?
Aims = broad, long-term goals; Objectives = specific, measurable targets
Top priority for new businesses
Top priority for new businesses
Survival
New business failure rate (5 years)
New business failure rate (5 years)
Over half fail
Main goal for commercial enterprises
Main goal for commercial enterprises
Profit maximisation
Sales maximisation approach
Sales maximisation approach
Accept lower short-term profits for higher market share
What shareholders gain from rising share prices
What shareholders gain from rising share prices
Profit when selling shares in future
Quality objective focus
Quality objective focus
Excellent products/services over max profit
Danger of rapid expansion
Danger of rapid expansion
Resource strain & survival threat
Four benefits of clear objectives
Four benefits of clear objectives
- Direction 2) Focus 3) Planning 4) Success measurement
Easier to measure: financial or non-financial objectives?
Easier to measure: financial or non-financial objectives?
Financial (quantifiable metrics)
Example: internal reason for objective change
Example: internal reason for objective change
Achieving one goal, setting new one
Example: external reason for objective change
Example: external reason for objective change
New competition entering market
Small vs large firms: who changes objectives faster?
Small vs large firms: who changes objectives faster?
Small businesses (lower costs, less consultation needed)
Quality objectives: initial impact on profit
Quality objectives: initial impact on profit
May reduce profit due to higher costs
Not-for-profit organisation objectives
Not-for-profit organisation objectives
Charitable/social purposes